Government Backs Down on Closing Tax Loopholes, Blows $3 Billion Hole in Budget

The Coalition has increased the budget deficit by $3 billion as a result of abandoning savings measures, Shadow Assistant Treasurer Andrew Leigh said today.

“Late on Saturday afternoon, the government announced that it would not proceed with 48 tax savings measures that had been announced but not yet enacted,” said Dr Leigh.

“Combined with similar decisions made on 6 November, this will cost the budget $3 billion.”

“In abandoning these savings measures and proceeding with a tax cut for mining billionaires, the government is showing that it has the wrong priorities.”

“The Government of ‘no surprises and no excuses’ can't persist in blaming Labor for its budget woes, when it won’t follow through with responsible savings measures.

“No wonder the Government needed to strike a deal with the Greens for unlimited debt.”

The Mid-Year Economic and Fiscal Outlook (MYEFO) out on Tuesday had been expected to show a budget deficit of at least $40 billion. The government’s latest decisions are likely to make that larger still.